Help with Statute Barred please.

redmel1621

Hi

I have been reading the sticky at the top of this forum, and am trying to clarify in my mind the definition of statute barred.

As I understand it, Scotland statute barred debt is extinguished completely after the limitation term and is no longer recoverable.

In England the debt is still recoverable after the 6 year limitation period, UNLESS there has been no contact from the creditor within those 6 years. The debt would then be considered 'unfair to collect' but is still 'legally collectable'

So if the debtor has been avoiding contact but the creditor is trying to obtain payment, then the debt would still be considered as payable in full.

Am I understanding this right?

fermi

redmel1621 wrote: »

So if the debtor has been avoiding contact but the creditor is trying to obtain payment, then the debt would still be considered as payable in full.

Am I understanding this right?

That would not prevent the debt becoming statute barred.

Once you tell them you will not be paying the dett as it is statute barred, then it would be an "unfair or improper practice" to continue pressing for payment.

redmel1621

So after 6 years you could actually contact them to tell them that the debt is statute barred and you will not be paying.

How would this hold up in court? Would the be on the side of the debtor, or would they enforce the debt to be paid.

I am just concerned that it is not legally extinguished as in Scotland.

I read it that the debt in England becomes statute barred, yet can still be pursued?

fermi

redmel1621 wrote: »

I read it that the debt in England becomes statute barred, yet can still be pursued?

They can still ask you to pay nicely, but once you have told them you would not be paying then then should stop pressing for payment.

See: http://forums.moneysavingexpert.com/showpost.php?p=47812037&postcount=12

Once you have told them to "bog off", then point (b)(iii) applies rather than (b)(i).

fermi

redmel1621 wrote: »

How would this hold up in court? Would the be on the side of the debtor, or would they enforce the debt to be paid.

There are High Court precedents that the Money Advice Trust refer to in their training courses.

In particular, even in extreme circumstances:

'It is for claimants to prove that they could not reasonably have discovered the facts concealed by the defendant (Paragon Finance v Thakerar 1999). The mere fact that a defendant cannot be traced, with the result that the claimant does not commence proceedings, does not prevent (a cause of action from accruing and) time from running. Even where a person is deliberately hiding from a claimant the 'concealment' provisions relate only to concealment of the cause of action and not to cases where debtors conceal themselves from the claimant (Lowsley v Forbes 1999)

In other words, the creditor can do whatever they like. Only court action stops the 6 years running, and if they don't do that in time then the debt becomes statute barred regardless.

Creditors know all this, so are unlikely to waste their time with court proceedings that if defended are highly likely to fail. Idle threats are much more cost effective.

redmel1621

Thank you for your help, fermi x

fermi

Good.

However, if you are not sure the debt is statute barred or want to check what I have said, please give National Debtline a call on freephone 0808 808 4000. May be a good idea to do that anyway.